Wednesday, July 20, 2011

Debt Debate, Part II

The adults have arrived on the scene. The House of Screaming Little Kids Throwing a Tantrum Holding Their Breath Until Turning Blue lead by Eric Cantor have taken a back seat to the adults in the Senate.

The proposal, crafted by a bipartisan group of senators known as the “Gang of Six,” calls for $500 billion in immediate savings and requires lawmakers in the coming months to cut agency spending, overhaul Social Security and Medicare, and rewrite the tax code to generate more than $1 trillion in fresh revenue.

In the works since January, the plan became public Tuesday, just as it was becoming apparent that the leading option for raising the federal debt limit faces bleak prospects in the House. With the Treasury expected to start running out of cash in two weeks, House Republicans are openly hostile to a Senate-led plan that would authorize additional borrowing but kick the hardest decisions — such as whether to raise taxes or cut entitlement programs — to a special legislative panel.

Republicans may also be losing the war of perception about who stands with whom in the debates over the deficit and the economy. A majority view the president as more committed to protecting the interests of the middle class and small businesses, while large majorities see Republicans as defending the economic interests of big corporations and Wall Street financial institutions.

Well there’s a huge surprise. How would people possibly think the Republicans are favoring the rich and big corporations? How is that? Oh yes the completely irresponsible idea that taxes should not be raised on the rich and corporations. The silly idea that if that’s done it will costs jobs. While slashing trillions from the federal budget will have no impact on jobs at all.

I have some hope that this might break the impasse. But as Obama has said time is running out. An agreement needs to be reached and fast. Hopefully, since the adults have shown up, that will be possible. But you never know what unruly and spoiled children will do.